Automatic Data Processing Inc (ADP)vsServiceNow Inc (NOW)
ADP
Automatic Data Processing Inc
$213.00
-0.51%
TECHNOLOGY · Cap: $85.14B
NOW
ServiceNow Inc
$91.18
-2.58%
TECHNOLOGY · Cap: $96.52B
Smart Verdict
WallStSmart Research — data-driven comparison
Automatic Data Processing Inc generates 55% more annual revenue ($21.60B vs $13.96B). ADP leads profitability with a 20.1% profit margin vs 12.6%. NOW appears more attractively valued with a PEG of 0.89. ADP earns a higher WallStSmart Score of 68/100 (B-).
ADP
Strong Buy68
out of 100
Grade: B-
NOW
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-9.1%
Fair Value
$195.25
Current Price
$213.00
$17.75 premium
Margin of Safety
+85.5%
Fair Value
$628.08
Current Price
$91.18
$536.90 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 71 in profit
Strong operational efficiency at 30.2%
Large-cap with strong market position
Keeps 20 of every $100 in revenue as profit
Generating 2.0B in free cash flow
Large-cap with strong market position
Growing faster than its price suggests
Revenue surging 22.1% year-over-year
Generating 1.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 13.4x book value
Distress zone — elevated risk
Trading at 8.0x book value
2.3% earnings growth
Distress zone — elevated risk
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : ADP
The strongest argument for ADP centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 20.1% and operating margin at 30.2%.
Bull Case : NOW
The strongest argument for NOW centers on Market Cap, PEG Ratio, Revenue Growth. Revenue growth of 22.1% demonstrates continued momentum. PEG of 0.89 suggests the stock is reasonably priced for its growth.
Bear Case : ADP
The primary concerns for ADP are PEG Ratio, Price/Book, Altman Z-Score.
Bear Case : NOW
The primary concerns for NOW are Price/Book, EPS Growth, Altman Z-Score. A P/E of 55.7x leaves little room for execution misses.
Key Dynamics to Monitor
ADP profiles as a mature stock while NOW is a growth play — different risk/reward profiles.
ADP carries more volatility with a beta of 0.84 — expect wider price swings.
NOW is growing revenue faster at 22.1% — sustainability is the question.
ADP generates stronger free cash flow (2.0B), providing more financial flexibility.
Bottom Line
ADP scores higher overall (68/100 vs 59/100), backed by strong 20.1% margins. NOW offers better value entry with a 85.5% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Automatic Data Processing Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Automatic Data Processing, Inc. (ADP) is an American provider of human resources management software and services.
ServiceNow Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
ServiceNow is an American software company based in Santa Clara, California that develops a cloud computing platform to help companies manage digital workflows for enterprise operations.
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